Central Bank of Kenya (CBK) has revised its projections of the economic growth from 5.4 per cent to 5.1 per cent, attributing the slowdown to the deceleration in growth in most sectors of the economy.
According to the most recent Kenya National Bureau Statistics (KNBS) report, the gross domestic product (GDP) data for the second quarter of 2024 showed a slowdown in the performance of the Kenyan economy, with real GDP growing by 4.6 per cent compared to 5.6 per cent in the second quarter of 2023.
“This slowdown mainly reflected deceleration in growth in most sectors of the economy. The projected growth of the economy in 2024 has therefore been revised to 5.1 per cent from 5.4 percent,” the CBK statement said.
KNBS, however, says second quarter of 2024 posted robust growth in key drivers of the economy such as agriculture, electricity and water supply, transport and storage, accommodation and food services, finance, and insurance although construction and mining, quarrying recording contractions.
Corresponding quarter
In the period under review, agriculture, the most important contributor of Kenya’s GDP, grew by 4.8 per cent compared to 7.8 per cent growth in the corresponding quarter of 2023 while electricity and water supply the sector recorded a slowed growth of 1.0 per cent compared to a growth of 2.8 per cent in the second quarter of 2023.
Transportation and Storage sector’s growth also slowed to 3.6 per cent during the period under review, from 4.6 per cent in the same quarter of 2023 and the accommodation and food service sector grew by 26.6 per cent compared to 42.8 per cent growth in the second quarter of 2023.
Additionally, the financial and insurance sector grew by 5.1 per cent compared to 13.2 per cent in the corresponding quarter of 2023.
The construction sector activities contracted by 2.9 per cent in the review period compared to a growth of 2.7 per cent growth in the second quarter of 2023.
Similarly, mining and quarrying contracted by 2.7 per cent during the quarter, up from a larger 8.3 per cent expansion in a similar quarter in 2023.
